Rising yields continue to put pressure on gold, silver and also the $SPX500. Yesterday afternoon, both gold (currently -1.5 per cent) and silver (currently -2.5 per cent) are clearly on the decline. In addition, Bloomberg reports the eleventh consecutive day of outflows from $GOLD ETFs. The longest stretch since Donald Trump was elected US president in 2016. Nevertheless, I see this as a healthy consolidation in silver before the next rise. Be aware, that this is my long-term observation.
$SILVER is one of the best trades in commodities at the moment. The signs of inflation are already there. In my current experience, it is still difficult to get physical silver. There is a risk of a real silver squeeze this year, not the way it was tried last month, therefore I expect silver prices to outperform gold by far. Silver may well trade at $40 to $50 in the current year.
However I remind everyone, that silver is a highly volatile investment. Just because silver can go to 50 dollars in the current year does not mean it will end the year there. He himself prefers to own physical silver, indirectly or directly. But I also remind you that gold and silver need a lower dollar. However, I see this scenario coming up in the coming months.
The price is strongly influenced by the Comex. Even if it would be desirable for the price to be determined mainly or exclusively by the physical market, the past shows that the futures markets play a decisive role. Nevertheless, when the fog around rising yields in the US has lifted, the silver price should benefit from the emerging inflation. And with it, of course, silver mining stocks.
My portfolio is well prepared for this scenario. I am looking forward to the upcoming market volatility!